Increasing the effectiveness, efficiency, and equity of how climate finance is delivered will play a key role in how people and countries can move towards realising the Paris Agreement, the Sendai Framework for Disaster Reduction, and the 2030 Agenda for Sustainable Development Goals. This Guidance Note serves as an introductory guide for stakeholders on how to create or refine a Climate Change Financing Framework (CCFF) – a strategic, whole-of-government plan to better manage, mobilize and target climate finance.
By providing guidance on how the core elements, processes and outputs involved in a Climate Change Financing Framework fit together, this Note will assist countries to create more effective, practical, and integrated financing responses. This Guidance Note places emphasis on the pivotal role of domestic finance and state budgets as a vehicle to achieve climate-compatible sustainable development. Indeed, a CCFF process could culminate in a strategic financing plan linked to a medium-term budget policy document.
This emphasis on domestic finance reflects the imperative for a paradigm shift toward “blended finance” approaches to climate action, as well as the greater importance of partnerships and government co-financing for achieving the SDGs. Emerging from bottom-up experiences of working directly with governments in the Asia Pacific, this guidance note has developed processes and strategies that are globally applicable and scaleable throughout other countries, areas and regions.